The US vice-president, JD Vance, asked the Department of Justice to investigate Tim Walz, his rival in the 2024 election, after a congressional report renewed allegations of inaction and retaliation over fraud schemes in Minnesota.
In the Trump administration’s latest broadside against the midwestern state and its political leaders, Vance referred Walz, its Democratic governor, and Keith Ellison, its Democratic attorney general, for investigation.
Ellison has filed dozens of lawsuits against the Trump administration.
The Republican-controlled oversight committee in the US House of Representatives released a 205-page report on Monday alleging Walz and Ellison knew about “widespread taxpayer fraud” in social programs and “repeatedly failed to act”.
It also claimed that state leaders retaliated against state employees who brought fraud concerns forward, “allowing criminal schemes to…
MANAGEMENT & CULTURE (THE “TONE AT THE TOP”)
Fraud thrives in “sloppy” environments where leadership ignores the rules.
- The Fraud Triangle: For fraud to occur, three elements must be present: Pressure (the need for money), Rationalization (thinking “I deserve this”), and Opportunity (weak controls). You can only control the Opportunity.
- Whistleblower Hotline: Provide an anonymous way for staff to report “odd behavior.” Most internal frauds are caught via tips, not audits.
- Background Checks: Conduct credit and criminal record checks for all employees in financial or data-sensitive roles.
- Annual Ethics Training: Make sure every staff member knows that the company has a Zero Tolerance policy toward “borrowing” from petty cash or fudging overtime.